1. Assuming that you won’t qualify for a home loan

Most people who have no credit histories are concerned that they won’t qualify for a loan because they’ve never had debt before. While having no history of debt is not a point in your favor, it is still not a cause for instant disqualification!

This is especially true for first-time homebuyers, who are given access to several state programs, tax breaks, and federally backed loans. Before concluding that you won’t be able to secure a loan, talk to a few mortgage lenders first to see if there are programs that you can qualify for.

1. Not getting preapproved for a loan

Most homebuyers look at listings first before securing a loan from a lender. This is usually not the correct approach. Remember that you are most likely not the only one looking to buy a house. Since the approval process can take anywhere from a few days to more than a month, somebody else could swoop down and make an offer that the seller won’t be able to refuse.

Getting preapproved for a loan also effectively allows you to set a budget, helping you narrow down your choices to properties you can afford. Once you find a suitable property, you can immediately place an offer and increase your chances of getting the home of your dreams!

1. Looking at houses beyond your price range

Looking at properties that you can’t afford is not only a waste of time, but it may even lead to unwise financial decisions down the road! Some homebuyers can get emotional and fall in love with a property that they can’t afford, tempting them to apply for a bigger loan or make some sacrifices in their financial health to try and purchase the place.

Once you have your budget set, it’s wise to only be looking at properties in those price ranges to manage your expectations. This also allows you to be more responsible and keep emotion from leading your decision-making process.

Remember that home mortgages usually last up to 30 years, which is a big commitment for a home that you may not be able to afford in the long run!

1. Not having a life insurance policy

Having your own home is an important part of adulthood. You should secure your own health before making a purchase decision as big as buying a house!

Having a life insurance policy allows you to secure you and your family’s future. Because life insurance covers all future health concerns, you can rest assured that your family will not be scrambling to pay for your medical bills should the unthinkable happen.

While a life insurance policy won’t be affecting your credit score, it can still help you convince mortgage lenders that you are capable of paying the loan. This is because life insurance policies have a cash value that can be considered as an asset. If the cash value is substantial, the asset be a way to pay for the loans, especially during times of financial hardships.

1. Failing to get a home inspection

The devil is always in the details. For finalizing a home purchase, make sure to do your due diligence by getting a home inspection. This will allow you to see any hidden or unnoticed problems in the property, which can lead to costly repairs. To avoid this, get a home inspector to evaluate the home’s condition before making any binding decisions.

Buying Your First Home in O’ahu with HI Velocity Mortgage

Buying a home is a big achievement. However, it is also an enormous commitment that needs to be maintained until a time you can pay off the loan or sell it to someone else. To make the home buying process less stressful, make sure to avoid the mistakes listed above!

Are you looking to get a mortgage to buy that dream Hawaii home? HI Velocity Mortgage is a mortgage company in Ewa Beach, Hawaii. We offer a wide array of loans to aid home buyers in finding the loan that fits their needs. Contact us today via (808) 727-1055 to know more!